EFFECT OF INTEGRATED FINANCIAL MANAGEMENT INFORMATION SYSTEM (IFMIS) ON SUCCESS OF PUBLIC SECTOR BUDGETING PROCESS IN KENYA
Abstract
Kenya adopted IFMIS with a view to improve efficiency and effectiveness of public financial management. The design and implementation of effective IFMIS solutions is challenging and requires the development of country specific solutions to meet a number of functional and technical challenges associated with the public financial management agenda. This study sought to evaluate the success factors from the implementation of an integrated financial management information system on budgeting process in the Kenyan public sector. Specifically the study assessed the functional aspects of IFMIS on budget forecasting, budget preparation, budget implementation and monitoring and control and their success contribution on the overall budgeting process. In addition to this the study sought to add knowledge on the gaps identified from the challenges of implementing the IFMIS system the various state departments with the goal of curbing fraud, enforcing more accountability and strengthening financial control. The study relied mainly on primary data from the national government ministries and various state departments in Kenya, data that was collected using a structured questionnaire developed thematically aiming to answer the specific objectives of the study. However secondary data from other government agencies was also be used for benchmarking various parameters but also to fill in the information gap areas. The study used mainly quantitative method of data analysis employing both descriptive statistics and inferential statistics in drawing conclusions. Our findings highlighted the various success aspects of implementing IFMIS on the budgetary cycle, such as enhancing efficient management of cash flows, enhanced more scrutiny of expenditure, more adherence to legal and regulatory framework, timely decision making hence leading to more budget accountability, efficiency and effectiveness. The study also identified the various challenges such as employee’s resistance to the system and capacity challenges. All in all, the study recommends that the government institute more training programs to bridge the capacity gaps in terms of skills and technological changes to fully realize the IFMIS reengineering strategy 2013-2018.
Key words: Budget, Budgeting, Budget Implementation, Budget Monitoring and Control, Budget Preparation, Budget Success, Forecasting, Financial forecasting, Integrated Financial Management Information System
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DOI: http://dx.doi.org/10.61426/sjbcm.v5i2.763
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